Mortgage Tax Break: What If It Goes Away?

Before you go, we thought you'd like these...
Before you go close icon
Realtors have gotten used to bad news over the last few years -- but the chatter about eliminating the mortgage tax deduction at last week's National Association of Realtors conference in New Orleans must have rattled them to their bones.

Thomas Hoenig of the Federal Reserve Bank of Kansas City made the suggestion during a speech that suggested interest rates need to rise before the housing market could fully recover. NAR economist Lawrence Yun later expressed concern that an elimination of the mortgage tax deduction, a cornerstone of American homeownership, would cause home prices to drop another 15 percent.

"Housing is critical to the economy," he said. "In my view, [losing the deduction] will surely put us in a broader economic recession."

For more insights on tax advantages see these AOL Real Estateguides:

More on AOL Real Estate:
Find out how to
calculate mortgage payments.
Find
homes for sale in your area.
Find
foreclosures in your area.
Get
property tax help from our experts.
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a New Home

Buy
Rent
Value
Powered by Zillow

From Our Partners

This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge This Elephant Was Separated From Her Mother As A Baby - But She's About To Get A Huge
19 of the Creepiest, Most Inexplicable Things People Ever Experienced 19 of the Creepiest, Most Inexplicable Things People Ever Experienced
Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked Man Built This Contraption In His Backyard - And Even He Was Surprised How Well It Worked